Rosenblatt Defies AI Fears, Lifts Amazon Price Target to $360

Rosenblatt Securities has raised its price target for Amazon to $360 from $335 and maintained its 'Buy' rating, citing concerns about AI shopping agents replacing Amazon's retail media model as overstated.

The firm's analyst believes that personal agents and AI shopping assistants can compress the discovery and purchase funnel, but this does not necessarily mean Amazon's business will be disrupted. The narrative that AI agents will replace Amazon's retail media model is false, according to Rosenblatt.

Amazon's own numbers back up this view, with more than 350 million customers using Alexa for Shopping over the last 12 months, and interactions rising by over 5x year-over-year. Customers who use Alexa spend over 40% more per order, while those who click a sponsored prompt convert to a sale 48% more often and spend 21% more on average.